N.J. Admin. Code § 19:5-8.4

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:5-8.4 - Guarantee of installation of required improvements

(a) After approval of the engineering drawings per 19:5-8.1 regarding required improvements, the subdivider shall enter into an agreement with the NJMC under which the subdivider agrees to install the required improvements at his own expense in accordance with the approved plans, within the time proscribed by the provisions of this chapter. Such agreement shall be conditioned upon the approval of the final plat.

(b) Simultaneously with the execution of the agreement provided for in (a) above, the subdivider shall furnish a performance guarantee, with sufficient sureties thereon, or a cashier's check, escrow account, irrevocable letter of credit, or cash in favor of the NJMC in an amount equaling 120 percent of the estimated cost of all improvements, as approved by the NJMC. Such guarantee shall be conditioned upon the approval of the final plat and further conditioned upon the actual completion and installation of such required improvements within three years from the date that the final plat is approved.

(c) Upon failure of the subdivider to complete the required improvements in a manner satisfactory to the NJMC, the required improvements may be completed using the performance guarantee. Any remaining balance of cash or escrow funds shall be returned to the subdivider.

(d) Upon completion of the required improvements and acceptance by the municipality, the subdivider shall furnish a maintenance bond for the benefit of the municipality within which the improvement is located, with sufficient surety, in an amount of 15 percent of the sum of the guarantee in (b) above, to warrant the required improvements against defective material and faulty workmanship for a period of 24 months from the date of the completion and acceptance of the required improvements by the municipality.

(e) Anything in this subchapter to the contrary notwithstanding, guarantees received by the NJMC herein shall not duplicate guarantees required by the constituent municipalities for municipal purposes.

N.J. Admin. Code § 19:5-8.4